Never miss an update

Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e

Item specifics

New with box: A brand-new, unused, and unworn item (including handmade items) in the original packaging (such as ... Read moreabout the condition
Brand: Adidas
Style: 011811|CP9890
Never miss an update

Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e -

    Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e
    Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e
    ADIDAS YEEZY BOOST 750 LIGHT GREY GUM GLOW SZ 8.5 350 kanye v2 turtle dove bred , KOBE SYSTEM VII ELITE | Size 12 | Black , NIKE AIR FOAMPOSITE PRO PRM 616750-001 11 PARANORMAN SUPREME SOLAR DOERNBECHERPUMA X MCM SUEDE LOGO LOW TRAINERS , NIKE AIR MORE UPTEMPO "SUPREME" RED 902290 600AIR JORDAN 3 RETRO "2011 RELEASE" - ITEM 224-1 STYLE 136064 105ADIDAS YEEZY BOOST 350 V2 KANYE WEST STEEL GREY BELUGA SOLAR RED BB1826 NMD 11.5Nike Air Max 90 Red Hyperfuse QS Sz 8 , ADIDAS Kanye West YEEZY BOOST 350 V2 SEMI FROZEN YELLOW B37572 MENS SIZE 11ADIDAS YEEZY BOOST 350 V2 “ZEBRA” 2017 ITEM NUMBER 4512-1NIKE AIR JORDAN 4 RETRO CACTUS JACK TRAVIS SCOTT SIZE 10 ASTROWORLD , NIKE AIR VAPORMAX FK "OFF-WHITE" 2018 - ITEM NUMBER 4795-1 , AIR MORE UPTEMPO “SUPREME” 2017 ITEM NUMBER 1563-4 , adidas NMD XR1 'MASTERMIND' - FTWHITE/CBLACK/FTWHITE - BA9726 , Air JORDAN X OVO 10 RETRO BLACK/BLACK-METALLIC GOLD 819955‌ 030 SZ 11NIKE ATMOS AIR MAX 1 DLX 9.5-10 "ANIMAL PACK 2.0" BLACK AQ0928-700 (2018) , NIKE FLYKNIT TRAINER + WHITE-BLACK SZ 7.5 RARE! [532984-100]Nike LeBron James/Kyrie Championship Pack Game 5 Forty Ones 925430 900 Sz 11 , DS Adidas Yeezy Boost 750 Light Brown Gum Chocolate sz 12 BY2456 , Balenciaga Triple S Sneakers Silver/Black/Red Men's US 11Air Jordan 3 Retro White Cement "88" BNDS Size 12US , adidas YEEZY BOOST 350 V2 'ZEBRA' - SWHITE/CBLACK/RED - CP9654 , NWT Comme des Garcons Nike Air Max 180 CDG White Pink Sneakers 2018 DS AUTHENTIC , New Balance x Concepts M998TNY 'Mint Tannery’ Shoes Size 11 CNCPTS 997 996 FiegAdidas Yeezy Boost 350 V2 White Cream CP9366 Triple White SPLY Kanye West NEWKanye Yeezy 500 Utility Black, 100% Authentic, US 9.5 , Air Jordan XI 11 Retro WIN LIKE 96 Size 9,10,12Reebok Ice Cream #JERSEY "856" SNEAKERS #Boutiques DS NameChain SIZE 8 #ICECREAMAIR JORDAN 4 RETRO "FEAR PACK" - ITEM 2-229 STYLE 626969 030
    Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e ->Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e -
    Frye Women's Cognac Phillip Harness Tall Boot - Round Toe - 76505-COG , YSL YVES SAINT LAURENT TRIBUTE PLATFORM BLACK LEATHER BOOTS US 8.5Mr/Ms filippo raphael Boots Packaging diversity high quality classic style , Redfoot Ladies Rosary Leather Black Chelsea Slip On Boots /Euro 37 RRP , Dr martens shiraz boots ladies size 38. GOOD AS NEWWomen's K JACQUES St. Tropez France Tan Leather Cork Slingback Wedge Sz. 40/9.5 , Stuart Weitzman Red Snake Print Wedge Sandals 1042 Size 8.5 M NEW! , Tory Burch 'Raleigh' Leather Pump Logo Toe - Blush Oak - 10.5 M (B48)grace womens rivets decor open toe slingback high block heel ankle strap shoes sASICS Women’s US 10 42 EUR Gel Cumulus 18 IGS EUC T6C8N Blue Coral Red , Ivanka Trump Dolanu Dress Sandals 6.5/6 Black Leather MISMATES New w/ DefectVans Chima Estate Pro Men's Size 8.5 Scarlet Gum Red OTW NIBNew Balance 574 NB men lifestyle casual sneakers NEW grey MS574-BG , NIKE LEBRON XII BNIB ORG/YELLOW SIZE 11 , UNDER ARMOUR UA TEAM HOVR PHANTOM SNEAKER RED ROUGE MEN SIZE 7 WOMAN 8.5 , Columbia 1723841 Mens Granite Ridge Mid Waterproof Hiking Shoe , Clarks Bushacre Ridge Men's Beeswax Leather Chukka Boots 26122634 , Skechers for Work Mens Flex Advantage Slip Resistant Mcallen- Pick SZ/Color. , Punk Men Metal Round Toe Print Leather Embroidery Slip on Shoes Casual , Daniele Alessandrini Moccasin Shoes Sz. 43 Man Brd F368KL1623606-14 PUT OFFERFRYE 88226 Mens Emerson Slide Sandal- Choose SZ/Color.Lloyd Men's Oktant Cap Toe Derbys Shoes Black , Asics Gel-Quantum 360 CM Athletic Shoes - Women's Size 8, Flash Coral/Black , SKECHERS EZ FLEX 2 A GAME BLACK PINK , New Sz 12 Women's Nike Volley Zoom Hyperspike Volleyball Shoe Black 585763-001Vintage Navy Blue Corduroy Western Suede Leather Mid Calf Cowboy Boots 6 6.5Madden Girl Women's Dallyy Ankle Bootie, Tan Fabric, 8.5 M USPRADA Kitten Heel BOOTS Womens size 36.5 Brown Leather Kitten Heel Italy Shoes , New Womens Crush by Durango DCRD187 Slouch leather Cowboy BootsZARA Black Glitter Ankle Boots Booties Shoes Euro 40 ,
    Will ETFs cause the next market crash?
    ETF Watch - Jun 29, 2017
    Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e -

    There’s no doubt that the last 2 years has seen the coming of age of ETFs. With what was once an unknown type of investment quickly becoming a $30b industry in Australia ($3 trillion globally). However, as ETFs have moved from the unknown to the flavour of the month, an increasing number of commentators have called on the risks ETF investors face, with some even stating that ETFs will be the source of the next market crash. Today we take a look at some of the claims as to why some believe there are so many risks associated with ETFs.

    Claim 1: ETFS are blindly pushing up stock prices

    Many have written about share markets being at record highs. In an interview with the AFR, Wilson Asset Management chief Geoff Wilson discussed his portfolios’ current high weightings to cash due to concerns of market over-valuations. 

    US based fund manager FPA capital called ETFs “Weapons of Mass Destruction”and stated “The flood of money into passive products is making stock prices move in lockstep and creating markets increasingly divorced from underlying fundamentals”. The argument they make is as ETFs blindly invest in stocks in their chosen index and ignore the underlying fundamentals of these companies. This causes these companies prices to be bid up to prices that do not support their fundamentals (ie a bubble), and eventually history repeats, the bubble bursts and markets crash.

    What do we think?

    ETFs account for around 10% of US stocks’ market value and less than 1% in Australia. In the US at least this is not an immaterial amount. However, the active managers whom ETFs have taken business from generally have mandates which force them to invest a certain percentage in the market. As a result, active managers have always been investing in expensive markets and pushing up prices. Additionally, what is currently called by many analysis as expensive equity markets could also be attributed to global record low interest rates rather than an uptick in passive investing. In saying that, since the last major market crash (the 2008 GFC), the proportion of total assets in ETFs are considerably higher and continual growth of passive investing must be considered as a possible cause of markets becoming expensive.

    Recently we’ve seen Vaneck reweight their huge Junior Gold Miner’s ETF as they approached 20% limits in some of their smaller holdings. This meant selling out of these small gold miners which saw large falls in some of these shares (some of which was blamed on hedge funds looking to capitalise on the opportunity). This is a great example of the influence that ETFs can have, albeit this is at the small end of the market.

    Claim 2: ETFs will sell on mass and compound market falls

    One of the known weaknesses of a managed fund structure is the ability for investors to fairly easily redeem their funds, meaning at times of market falls, when a fund manager may find the best investment opportunities, the investors in the fund are panicking and redeeming their investments, meaning the fund manager becomes a forced seller rather than a buyer. This was one of the reasons Forager decided to turn their Australian Share Fund (FOR) into a Listed Investment Trust, where the pool of capital for them to invest was guaranteed.

    The one thing stopping simple redemption of managed funds during market crashes is another one of its weaknesses, which is managed funds are not simple to trade, and require the investor to apply to the fund to redeem units. This can involve filling out paper forms, and an apathetic investor may simply not be bothered.

    What do we think?

    One of the greatest advantages of ETFs is also one of its weaknesses when it comes to the above, with ETFs able to be traded on the ASX, a panicked investor simply has to log into their online brokerage account and hit the sell button. If a buyer does not exist on the other side of the trade, the ETF issuer is forced to then sell the underlying holdings which could very well begin a contagion effect.

    However, we come back to the size of the ETF market, at around 1% of the Australian market and 10% of the US market. Investors selling underlying stocks that they own through their broker will have the exact same impact as the reasonably small proportion of ETFs. We believe the actual impact of this event would be not materially higher than what currently exists.

    Claim 3: ETFS with low liquidity will be hard to sell if markets fall

    Peter Switzer recently spoke about a client who had received advice that an ETF with low liquidity would be difficult to sell if markets fall. The argument being that without a liquid market the seller would be unable to find a buyer on the other side of the trade and would need to sell at a significant discount.

    What do we think?

    One of the somewhat unknown components of ETFs is the role of the market maker. Essentially the market maker’s role is to provide liquidity to an ETF, so that if there is not an existing ETF unit on the other side of an ETF trade, the market maker must create an ETF unit for a buyer, or absorb an ETF unit for a seller. It is then the ETF issuer's role to buy or sell the underlying assets that the ETF holds. This means that regardless of an ETF’s liquidity, a market maker will always exist to buy an ETF off an investor even if the markets in free fall.

    However, there is a caveat to the above. Market makers make a profit by charging a spread between the buy price and the sell price of an ETF. The spread becomes the market maker’s profit margin. In a free falling market it may be difficult for the market maker to price the underlying investments forcing them to create a huge spread between the buy and sell price to protect their margins. This was seen in the 2015 Dow Jones ‘Flash Crash’, where some ETFs dropped 30% when the market makers were unable to price the underlying securities.

    Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e -

    Finally, an ETF is only ever as liquid as its underlying holdings. ETFs which invest in illiquid investments may have great liquidity, but if the underlying investments do not, this will likely be reflected in falls in both the underlying holdings and the ETF during market falls. This may be more likely to play out at the small cap end of the sharemarket and within unlisted asset classes.

    Claim 4: ‘Exotic’ ETFs are higher risk

    In a recent RBA publication, economist Michelle Cunningham discussed the risks faced with some of the more exotic ETFs, those that are classed as ‘synthetic’ ETFs, meaning the ETF issuer does not hold the underlying investments, rather they rely on a counterparty to pay the return. These ETFs are generally referred to as ‘Synthetic’ or ‘Hedge fund’ in their title. Cunningham raised the risk that the counterparty may default on their obligation, so an additional level of risk exists for the investor.

    What do we think?

    We agree with Cunningham’s analysis, an additional level of risk certainly exists with these ETF structures, however in many cases this is the only way to access to investment strategy that the ETF provides. Nevertheless, investors should be aware of the additional risks that exist.


    There’s plenty of arguments in both camps about ETFs role in future market crashes. There’s no doubt the world has moved into uncharted territory with the rise of passive investing & ETFs in particular. We do believe, however, that some of the risks are overblow. Nevertheless, investors should be aware of these risks in order to make informed investing decisions. What do you think?


    Previous Article

    2017 Financial Year ETF and LIC Performance Table

    Next Article

    New Fixed Interest ETFs expand options for investors

    Leave a Reply
    Find a Fund
    Gentlemen Stylish/Ladies shoes Adidas Y-3 Pureboost - CP9890 Crazy Breathable price Stylish and fun Breathable shoes c01249e
    Athletic Shoes